Fix & Flip Investment
Fix & Flip Investment
Fix & Flip investment is the strategy of purchasing a real estate property, at a below market price, renovating it, then resell it at to make a profit.
The way a Fix & Flip works is simple, Investors purchase a property at a discount cost because of the condition or the seller’s situation that may influence or require a fast sale.
It might have been a property that the owner no longer wants, due to poor property condition, lock of repairs, abandonment or other financial reasons the owner are facing, such as city or state violations, none payments of water bill, property tax or other legal issues, just to mention a few.
First
The investor will need to find a property that based an assessment and comps in the area of interest, that would positively indicate that the investor can make a profit.
Second
The investor is require to find a licensed and experience home improvement contractor, to renovate, at the completion of the renovation the house must be competitive to the other fix and flip on the market.
Third
The investment at this point will relist the property with a real estate company to sell for the highest price possibly for the property.
Fix & Flip investment is the strategy of purchasing a real estate property, at a below market price, renovating it, then resell it at to make a profit.
The way a Fix & Flip works is simple, Investors purchase a property at a discount cost because of the condition or the seller’s situation that may influence or require a fast sale.
It might have been a property that the owner no longer wants, due to poor property condition, lock of repairs, abandonment or other financial reasons the owner are facing, such as city or state violations, none payments of water bill, property tax or other legal issues, just to mention a few.
First
The investor will need to find a property that based an assessment and comps in the area of interest, that would positively indicate that the investor can make a profit.
Second
The investor is require to find a licensed and experience home improvement contractor, to renovate, at the completion of the renovation the house must be competitive to the other fix and flip on the market.
Third
The investment at this point will relist the property with a real estate company to sell for the highest price possibly for the property.
Purchase Value vs. After Repair Value
The cost of acquiring the house plus real estate fees and repairs and or renovation, in considered the fix and flip value.
The main thing that investors are interested in is the ARV after market value, which is the approximate market value of the house once the repairs or renovation are completed.
The difference between the fix and flip value and the ARV after market value is the expected profit for the investor.
Home buyer
Once the house is relisted, a home buyer will most likely purchase the property for the current ARV after market value, with the understanding that the house was just totally renovated, nothing is more important to a home buyer than a house that needs no work or repairs before they can move into their new home.
The main thing that investors are interested in is the ARV after market value, which is the approximate market value of the house once the repairs or renovation are completed.
The difference between the fix and flip value and the ARV after market value is the expected profit for the investor.
Home buyer
Once the house is relisted, a home buyer will most likely purchase the property for the current ARV after market value, with the understanding that the house was just totally renovated, nothing is more important to a home buyer than a house that needs no work or repairs before they can move into their new home.